Correlation Between Guocheng Mining and Huali Industrial
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guocheng Mining Co and Huali Industrial Group, you can compare the effects of market volatilities on Guocheng Mining and Huali Industrial and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Guocheng Mining with a short position of Huali Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Huali Industrial.
Diversification Opportunities for Guocheng Mining and Huali Industrial
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guocheng and Huali is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Huali Industrial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huali Industrial and Guocheng Mining is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Guocheng Mining Co are associated (or correlated) with Huali Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huali Industrial has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Huali Industrial go up and down completely randomly.
Pair Corralation between Guocheng Mining and Huali Industrial
Assuming the 90 days trading horizon Guocheng Mining is expected to generate 5.7 times less return on investment than Huali Industrial. In addition to that, Guocheng Mining is 1.14 times more volatile than Huali Industrial Group. It trades about 0.01 of its total potential returns per unit of risk. Huali Industrial Group is currently generating about 0.04 per unit of volatility. If you would invest 5,631 in Huali Industrial Group on September 13, 2024 and sell it today you would earn a total of 2,046 from holding Huali Industrial Group or generate 36.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Guocheng Mining Co vs. Huali Industrial Group
Performance |
| Timeline |
| Guocheng Mining |
| Huali Industrial |
Guocheng Mining and Huali Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Huali Industrial
The main advantage of trading using opposite Guocheng Mining and Huali Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Huali Industrial can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Huali Industrial will offset losses from the drop in Huali Industrial's long position.| Guocheng Mining vs. Cambricon Technologies Corp | Guocheng Mining vs. Loongson Technology Corp | Guocheng Mining vs. Shenzhen Fortune Trend | Guocheng Mining vs. Chongqing Road Bridge |
| Huali Industrial vs. Tibet Huayu Mining | Huali Industrial vs. Huaibei Mining Holdings | Huali Industrial vs. Chengtun Mining Group | Huali Industrial vs. Guocheng Mining Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |